Still solid, though the glory days are over
Listed in the US, Apple is probably one of the best-known listed shares anywhere in the world. Recent results show that iPhone sales are slowing for the first time ever. This isn’t the company’s only issue, however; it hasn’t had a decent product hit since the iPad and it’s falling behind with regard to new innovation of its existing devices.
But with a monster cash pile, with over $150bn set aside for share buybacks, a massively cashgenerative business and trading on a 10 times price-to-earnings ratio (P/E), it may no longer be the world’s tech leader but it is a great company at a very cheap price. It remains one of the best brands of all time. Brands are important and while they can fall, Apple is very unlikely to do so. A large part of the Apple brand is premium pricing, which adds to its very large margins. I think this share’s high-flying days are over, but as a solid earner with great products (even if not so innovative any more), this tech giant is worth considering as a buy at current levels.